ipo listing: What the gray market is signaling about the listing of Ami Organics & Vijaya Diagnostics
New Delhi: With the secondary market showing subdued action after a record-breaking rally, the domestic primary market is preparing for activity in the coming week with two listings and an initial offer.
After the current gray market premiums, the listing of Ami Organics and Vijaya Diagnostic Center should be a mixed deal for the allocated investors.
Traders and the gray market trackers said the pre-listing premium is stable for the companies. However, a decent listing gain is expected.
In the gray market, Ami Organics has a strong premium of Rs 150-155 per share, above the price range of Rs 603-610 per share.
Abhay Doshi, co-founder of UnlistedArena, said Ami Organics is expected to see strong stock market gains as the company left something on the table for investors.
“The company has a niche and premium line of products,” added the gray market tracker. “Ami Organics’ API products are in high demand in the industry.”
However, the Vijaya Diagnostics Center is expected to discourage investors as the company trades at a discount of 15-20 rupees from the price range of 521-533 rupees.
Narottam Dharawat of Dharawat Securities, based in Mumbai, said Vijaya Diagnostics’ premium has remained stable for the past few days. “After strong demand in the healthcare sector, it could be a positive surprise for investors.”
On the other hand, Doshi from UnlistedArena at Vijaya Diagnostics isn’t optimistic. He said the counter’s pricing is pretty aggressive and the response hasn’t been very strong either.
Both Ami Organics and Vijaya Diagnostics are expected to debut on Dalal Street on Tuesday, September 14th. The issues were available for subscription from September 1st to 3rd.
Ami Organics’ initial public offering of Rs 570 crore was subscribed 64.54 times thanks to the strong response from institutional and HNI investors. On the flip side, Vijaya Diagnostic’s initial public offering of Rs 1,895 crore received 4.54 times the subscription.
The recent primary market issues hadn’t gotten investors strong thanks to the frenzy of IPOs that made money at high and expensive valuations.
The main edition of Sansera Engineering is also coming out next week. The Bengaluru-based auto components maker will raise Rs 1,283 billion in the fixed range of Rs 734-744 through its IPO between September 14 and 16.
It commands a premium of Rs 70 on the gray market. There’s not much activity on the counter, but the mood could improve after listing these two issues, Doshi said.